Question

If the SI on a certain sum of money at
4% p.a. for 2 years is Rs. 125. What
would be the compound interest if it is
compounded annually at same rate of
interest for the same period?​

Answer 1

Answer:

P=100xI/NR=loox 125 / 2x4 = 1562.50

A=p(l+r / 100)n

= 1562.50 (1+4/100) 2

=1562.50x!.04x1.04= Rs. 1690

CI = 1690-1562.50 = Rs.127.50